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Erin, Class of 2007

How did you initially plan to pay for your PSU education?
My parents were honest with me and let me know early on in High School that if I wanted to continue my education that they would be financially unavailable. Initially I had high aspirations to get as many scholarships as I could along with grants and other “free” money. The first semester I was at PSU I did the payment plan which my parents and I paid for. After that, I started looking into loans with NHHEAF and never turned back. Loans became more familiar to me as I took the time to look into them and ask questions. 

If you did borrow money…how easy was it to borrow?
It was easy, but time consuming and tedious at the same time. I had multiple calculations to enter in my cost of attendance, what my external expenses were going to be (such as travel and living – I became a commuter shortly after my 3rd semester at PSU) and from there I browsed around. In the beginning – it was who would give me the most money. I didn’t know too much about interest rates and so I put it in the back of my mind because loans would have the “buy now - pay later” option. The paperwork, filing, and remembering who, what, where, and when with my current loan status was simple, but not easy.

What did you think about repaying your student loans, when borrowing them?
I knew one word – DEFERMENT! All I was concentrating on was getting through the next semester. If I wasn’t approved for a loan, I wasn’t going to be attending classes. I always kept the option open to go to school part time, and I even really considered taking courses at other campuses, even taking a semester off to work – but then I realized that I would loose that grace period I was relying on so much at a later time. Other than that, I knew getting a good job right out of school was important. Six months is not a long time to become financially prepared or independent if you’re just starting out. If you don’t have a plan – you don’t have a vision, and without vision, you don’t go very far. That’s what I knew was most important; it was one word “deferment” but it was multiple actions and visions to form a “plan”.
 

Did you use your student loan money for things other than your cost of education?
Absolutely. I liked to call myself “untraditional” in the financial aid office because I was eager to get my refund check and use it for external costs. Early in my academic career I developed a budget, and as it grew, my need for re-imbursement from the university did the same. The Financial Aid team recognized this and worked WITH ME to get the best rate of interest. I knew I had the money to spend now, but I was going to be repaying it later. That’s something important to remember. Refund checks are not financial gifts like you receive from your grandparents – it’s still a debt.
 

What is your experience with credit card usage and credit card debt? (in and out of school)?
When I was 20 years old I consolidated $3600.00 worth of credit card debt. Again, I bought into the “buy now – pay later” concept and didn’t realize that when I spent $100 at wal mart, I was going to only have to pay back $15.00 to start. Well, those interest rates climb faster than you would believe and pretty soon I had 6 credit cards and no steady flow of income coming in to pay them off. I got sucked in! I got out of debt fast and now have rebuilt my credit to a manageable degree. It’s not the large balances that keep you on your toes though – it’s your credit report. I can remember going to an apartment complex and attempting to get someone to give me a place to live. One of the first things they ask for is your credit report – and they are NOT shy about picking your brain about it either. Missing 30, 60, 90, even 120 days worth of payments drops your score dramatically – and they want to know why you didn’t pay! Bottom line with credit card debt is:
• Always pay more than the minimum balance
• Maintain an achievable amount – don’t go hay wire because Joe Shmoe Credit Card Company gave you $1000 to spend on whatever. In the end, you’ll pay back that entire amount plus half! Is that tee-shirt or that beer really worth it now?
• Co-Signers: can’t live with them, and sometimes you can’t live without them!

When you were a PSU student did you have a budget?
Not in the beginning – I learned how to maintain a budget before I had one. I purchased a car in 2005 and then started to have expenses that were consistent. I wasn’t thinking about putting away for the future when I was developing my budget and attending classes, I only cared about the here and now.

Did you have a summer job or a job during the school year to help with your expenses?
That’s an interesting question. I started only working at the library with a student work study – but then realized that I wanted to get off campus more. I then began working full time in Concord and maintained employment there for two and a half years. Like I said, when your expenses increase thus does your revenue, and in return so does your desire to spend also increase – so at any given time I was working one full time job and was in between two part time jobs.  In the summer I had twice the amount of time and half the amount of steam – but I was still consistent with two full time jobs.
 

Explain your financial situation now.
I work my butt off – financial freedom does not come easy. I was fortunate to be hired right after completing my final exams and I now work full time as a Business Manager in Concord, NH. My budget is examined weekly, and I’m always adding and subtracting expenses to figure out the right amount of income for me. What is my financial goal – to be debt free, living and doing what I want, when I want and with whomever I want. Leveraging my time and building up a retirement to sustain me from the starting age of 35. To obtain that goal – I’ve business partnered with Market America and I’m not looking back. My financial situation is up to me – always has been, and always will be. I’m not going to be rich and free by sitting still, I believe in creating achievable goals, whatever they may be, and in return teaching other people how to do the same. Don’t hesitate – the time is NOW!
 

Is there financial information you wish you had known as a student that would help you now?
IF YOU DO NOT KNOW HOW TO FIND THE ANSWERS YOU ARE LOOKING FOR – ASK QUESTIONS! So many students today are troubled by going in and asking their questions. They believe it’s demeaning on their character or it’s going to make them look stupid or irresponsible. That’s not the case! Network – find someone who you can talk to and go and see them every time you have a question! Generate a meeting with them – it only takes 15 minutes! If you compare 15 minutes in one day to the average of 160 hours you work in ONE MONTH in the real world – Come on! Get your questions answered!

Knowing what you know now about finances…would you have done anything different?
I believe that everyone comes to the light at their own pace AND their own time. Some people miss the boat – others wait at the harbor long before any boat is expected. For me, I would have taken more time after high school before investing in a higher education. Statistically – I understand that some people who never go right away don’t ever go at all, but think about how much wiser you are after learning about yourself. My biggest personal growth period was between the ages of 19 and 22 – and that includes ALL areas of my life. I didn’t really know how to buckle down until my academic career was just about over. Everyone needs to do and understand what the best plan is for them – and then go with it. One way or another, it will catch up with you in the end. Be prepared to accept responsibility for the actions you take no matter what they are!
 

What do you think would be the most effective way(s) to provide information to students about personal finance?
You need to have real life people like me generate that “in between”. Someone who’s been there and is relatable to students, parents, teachers, and staff. Someone who is knowledgeable about the kinds of key points that can make or break a financial outcome. What are you waiting for!?!? Let’s get to work TOGETHER!